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Question 1

Which of the following is one of the Fed’s policy goals? A) zero unemployment
B) exchange rate stability
C) monetary base maximization
D) price level stability

Answer 1

D

Question 2

The Fed’s goals include
A) open market operations.
B) price level stability.
C) monetary base stability.
D) maintaining a low federal funds rate.

Answer 2

B

Question 3

The Federal Reserve’s monetary policy goals include
A) ensuring banks can meet their profit maximization objectives. B) discount rate stability.
C) zero percent unemployment in the domestic economy.
D) price level stability.

Answer 3

D

Question 4

The Federal Reserve’s monetary policy goals of maximum employment mean A) a zero percent unemployment rate.
B) a zero percent natural unemployment rate.
C) keeping the unemployment rate close to the natural unemployment rate.
D) that cyclical unemployment should not necessarily be minimized.

Answer 4

C